The markets today were adversely affected
d by weak global cues coupled with Reserve Bank of India action and it led to both benchmark indices closing lower than the psychological 18000 and 5400 marks. The Nifty as expected tested its lower end of the support, and eventually also closed at the lower end. The current trend is bearish in nature and we may see a fall to the level of 5350 if Nifty is not able to scale above the level of 5500. The MACD has turned negative on the daily charts and thus probability of Nifty touching 5350 levels is high and if it sustains at that level than it can fall to the levels of 5200. Thus it is very important that one trades in hot stocks with proper advice and guidance to make daily money at NSE and BSE.
The main reason for today’s downfall was obvious and it was Reserve bank of India hiking the key rates for the tenth time since March 2010 to tackle the spiraling inflatio
n. The key rates were hiked by 25 basis points. The repo rate was raised to 7.5% and the reverse repo rate now stands at 6.5%, while the cash reserve ratio remains unchanged. We had accurately predicted day before yesterday, the likely rate hike and sectors which were going to be affected. In its statement Reserve Bank of India stated that policy stance remains anti-inflationary and the inflation persists at uncomfortable levels. Thus we too feel that this rate cut do not stop here but another 25-50 bps cut is round the corner is going to be in the next meet. Isn’t it “Jor Ka Jhatka Dheere Se”. The inflation is high around 9.1% for May which is going to act as a road block for our growth. Analysts expect GDP growth around 7.9% for FY12. The marginal standing facility (where banks can borrow overnight upto 1% of their net demand and time liabilities) rates stands at 8.5%. The overall breadth was positive as 1,085 stocks advanced for 1744 stocks which declined. Thus as a net results the home loands and auto loans are going to be costlier. No doubt automobile industry will have the most negative impact on the stock in short term.
This stance was known from RBI as In May, RBI Governor D Subbarao had said, "Global commodity prices have surged in recent months and are likely to remain firm suggesting higher inflation will persist and may even get worse. The headline and core inflation have shot past the most pessimistic forecasts in the past few months."
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Support and Resistances for the Day
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If you like our post than do not forget to refer our NSE Live website to your friends and colleagues. You can find more info related to the share markets of India by searching with the following keywords on the site by using the Google tool as given on the financial blog cum website.
d by weak global cues coupled with Reserve Bank of India action and it led to both benchmark indices closing lower than the psychological 18000 and 5400 marks. The Nifty as expected tested its lower end of the support, and eventually also closed at the lower end. The current trend is bearish in nature and we may see a fall to the level of 5350 if Nifty is not able to scale above the level of 5500. The MACD has turned negative on the daily charts and thus probability of Nifty touching 5350 levels is high and if it sustains at that level than it can fall to the levels of 5200. Thus it is very important that one trades in hot stocks with proper advice and guidance to make daily money at NSE and BSE.The main reason for today’s downfall was obvious and it was Reserve bank of India hiking the key rates for the tenth time since March 2010 to tackle the spiraling inflatio
n. The key rates were hiked by 25 basis points. The repo rate was raised to 7.5% and the reverse repo rate now stands at 6.5%, while the cash reserve ratio remains unchanged. We had accurately predicted day before yesterday, the likely rate hike and sectors which were going to be affected. In its statement Reserve Bank of India stated that policy stance remains anti-inflationary and the inflation persists at uncomfortable levels. Thus we too feel that this rate cut do not stop here but another 25-50 bps cut is round the corner is going to be in the next meet. Isn’t it “Jor Ka Jhatka Dheere Se”. The inflation is high around 9.1% for May which is going to act as a road block for our growth. Analysts expect GDP growth around 7.9% for FY12. The marginal standing facility (where banks can borrow overnight upto 1% of their net demand and time liabilities) rates stands at 8.5%. The overall breadth was positive as 1,085 stocks advanced for 1744 stocks which declined. Thus as a net results the home loands and auto loans are going to be costlier. No doubt automobile industry will have the most negative impact on the stock in short term.This stance was known from RBI as In May, RBI Governor D Subbarao had said, "Global commodity prices have surged in recent months and are likely to remain firm suggesting higher inflation will persist and may even get worse. The headline and core inflation have shot past the most pessimistic forecasts in the past few months."
Click Here to Get Free Stock Market Tips & E-book in Email
Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5350-5325 | 5460 |
| Sensex | 17230 | 18200 |
| Stock | Profit (Rs) |
| Tip | 1990 (Rs 50,000 Trading) |
Intraday Trading Tips
| Share | Gains (Rs) |
| Tips | 35760 |
Future and Options Daily Paid Tips
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 59870 |
If you like our post than do not forget to refer our NSE Live website to your friends and colleagues. You can find more info related to the share markets of India by searching with the following keywords on the site by using the Google tool as given on the financial blog cum website.
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